microloan

A very small, often short-term loan made to an impoverished entrepreneur, as in an underdeveloped country.

Development loan to a small business arranged by a bank-funded Community Development Bank. Such loans provide startup capital in economically disadvantaged communities, and are often made for amounts as small as $1,000. Microloan programs assisted by the World Bank provide needed funding in developing countries. They are becoming more common in the United States. Also called microcredit.